Walmart Introduces Smart Network
Sep 19 2008
Retail Wrap >>

Walmart executives have unveiled Walmart Smart Network, described as the first "shopper-intelligent network at retail." 

Developed after two years and $10 million of R&D with participation from leading advertisers, Smart Network consists of "Welcome Screens" for customers walking into the store; "Category Screens" delivering more-focused messages in the core departments (grocery, health & beauty and electronics); and "Endcap Screens" directly advertising items displayed in key endcap displays. Networks are rolling out in eight major markets this month with the majority of stores converted by November 2009.

To date Wal-Mart TV broadcasts have been previews of soon-to-be-released movies, snippets of sports events and rock concerts and corporate messages. Walmart Smart Network is purely focused on providing shoppers with "relevant and useful information." The technology deploys response measurement and message optimization technologies "to enable delivery of the most relevant content to shoppers - by store, by screen, by day and by time-of-day."

• The new network can show promotions based on weather conditions. Soup may be promoted if it's raining outside the store. Ads may promote barbeque items if it's going to be eighty degrees on Saturday.
• Promotions might also be arranged around local events, such as a nearby college football game.
• The network also offers different items depending on the time of the day. For example, promoting frozen pizza at 5:00 p.m. has already proven to be a big winner with moms looking for an easy dinner for their kids. At 10:00 a.m., the ads showed no lift.
• Rather than ‘hard-sell tactics’ these messages are intended to seem like a timely suggestion.
• To prevent the ads from being annoying, the length of the messages is purposely kept short and continually changed up. The sound around the messages is modulated and speakers are directed so only the person viewing is hearing the message.

For brands, the key advantage is being able to reach Walmart's more than 140 million weekly customers directly at "the moment of truth". So far, brands participating in the programs in tests have received a boost of 20 percent to as much as 80 percent. But Mr. Quinn admits that the one hurdle to success is whether the marketing community will embrace in-store as a major advertising medium.

Adapted from Source: www.retailwire.com, 4 September 2008